Article Directory

Free Article Directory - Submit Your Articles
Search:

Categories:

Business Financing: Make Your Dream A Reality



by: theengineer
Total views: 2
Word Count: 558

"When I grow up, I want to be a successful businessman!" How many times have we heard little children say this? Believe it or not, this dream still eludes many adults today. So, what could be the cause of this unfulfilled dream? Financing, whether we are talking about a $50 start-up or a $1Million expansion plan, Business Financing can translate this vision into actuality. So, who can get their business financed? Anyone...for as long as you know where to look. You see, every successful business reaps great benefits to so many people, not only to the business owner. It is for this reason that feasible business proposals are closely looked at with interest by many possible investors. They know that if the business succeeds, they, as the investors will reap the benefit too. In macro view, the addition of a new product or service, as well as jobs, in the community are considered important benefits as well. The first step in your search for business funding is first determining how much you need. Money requirements basically include office space rental, office equipment, office supplies, insurance, utilities, maintenance, advertising, labor, business licenses, raw materials, etc. Once you have collated all these budget figures, it is suggested that you work with your accountant or your bank institution to help you prepare a realistic sales projection for your initial year of operation. This will determine your cash flow on a monthly basis. The key word, however, is realistic. There is no sense in fooling your investors, and even yourself, in the long run. Be honest and get the rightful amount of financing you require. The next step is deciding what type of financing is preferred --- debt or equity financing? Debt financing may first appear as a better choice. Reason being that the lenders will not have any influence over the operation or profits of the business. Their interest is limited to getting paid back in a period of time. The downside, apart from it is hard to find, is that you get pegged down to a periodic settlement of a fixed amount, regardless of how your actual cash flow is performing. On the other hand, equity financing does not require a stiff settlement of dues. The equity investor has more interest and gives more leeway in growing the business. Not only does the equity investor allow more flexibility, he also provides advice and business contacts to help ensure the business triumph. Unfortunately, in equity financing, the investor also becomes an active player in the business, making his opinion count in every major decision to be made. This requires regular consultation with the partners and needs advice from accountants and lawyers with much paperwork. Although many businesses start off with debt financing, especially for small businesses, a combination of both debt and equity financing is bound to be considered as the business grows. Regardless of the type of financing you decide on, keep in mind that there are a lot of sources for funding --- private sources (e.g. banks, friends, family) and public sources (e.g. federal government). So, good luck and make your business dream into reality!

About the Author

E. Linares is Chief Visionary Architect at Commercial Magnet:: the new face of the online lending marketplace where borrowers and lenders connect; 6 points of service to help build your wealth! Visit http://www.commercialmagnet.com today.

View PDF | Print View
Rating: Not yet rated

Comments
No comments posted.
Add Comment
You do not have permission to comment. If you log in, you may be able to comment.
Next Article - A Credit Card Advance Or A Small Business Loan?
Previous Article - Different Types Of Business Loans

More Related Articles In This Category

1: A Credit Card Advance Or A Small Business Loan?
2: Business Financing: Make Your Dream A Reality
3: Different Types Of Business Loans
4: Small Business Loans: Secured or Unsecured?
5: Getting Unsecured Bad Credit Loans
6: Working Capital: The Essential Component for A Successful Business
7: Business Funding The Easy Way
8: The Best Path To Small Business Funding
9: Importance of Small Business Financing
10: Obtaining Bad Credit Unsecured Loans
11: Business Loans for Small Businesses
12: Getting Loans for Small Business
13: Getting a Small Business Loan
14: Unsecured Business Loans With Or With Out Collateral
15: Business Lines of Credit Provide Quick Influx Of Cash
16: A Merchant Cash Advance Guide
17: Business Loans Are The Way To The American Dream
18: Commercial Loans Not All The Same To All Borrowers
19: Working Capital Loans Keeping Business Owners In Business
20: How Can A Merchant Cash Advance Help A Smart Business Owner
21: Keep a Steady Cash Flow With a Small Business Loan
22: How Can An Unsecured Business Loan Help My Business?
23: Unsecured Business Loans Can Help You Business Stay Afloat
24: Secrets to How You Can Build Amazing Business Credit!
25: Be Oriented Of Home Equity Loan-The Right Option

For WebMasters


Link This Article - HTML Code -
Link This Article - BBcode -

Copy This HTML Code To Put This Article In Your Web Site.

Tags: , , , , , ,
Article URL : Business Financing: Make Your Dream A Reality
Article Category : Loans
Article Author : theengineer



Main Menu

Example Pages

Sponsers

Article Directory